Tesla and SpaceX CEO Elon Musk has said that he will slash 75 percent of the staff at Twitter after he acquires the platform.
Twitter immediately stepped in to clarify to staff there are no plans for company-wide layoffs, denying reports that Musk plans to reduce the size of the workforce after the acquisition.
Musk, the richest person in the world, told prospective investors in his deal to buy the social media platform that he plans to shrink the number of workers at the company from 7,500 to about 2,000.
Musk’s purchase of Twitter has been messy, to say the least. He tried to back out of the deal multiple times, only to in the end agree to purchase it for the originally agreed-upon price.
Musk agreed to proceed with his $44 billion agreement to purchase Twitter earlier this month after the company sued in an effort to force him to follow through with the deal, which the parties agreed to in April, amid his earlier attempts to back out.
Now a question looms over how much of Twitter will remain in terms of the workforce after Musk takes it over. The company’s general counsel, Sean Edgett, emailed employees on Thursday to inform them that there was no plan to make any job cuts.
The job cuts are reportedly expected in the coming months, no matter who owns the company.
Twitter’s current management had also planned substantial reductions to its staff. Prior to Musk starting his takeover bid, Twitter was planning an $800 million payroll cut that would involve letting nearly 25 percent of the company’s workers go by the end of 2023, as well as major cuts to its infrastructure, the paper reported.
Documents show extensive plans to push out staff and cut down on infrastructure costs were already in place before Musk offered to buy the company.
Be the first to comment